In a word…WHOA…

Kris-Kross Market – Limit up, limit down, jump around! Equities will make ya…scratch your head. Futures were limit up pre-market amid talk of a stimulus package to come. Speaking to those on both of the buy and sell-side aisle early, to say Wall Street was skeptical the move would hold is an understatement. It didn’t, with the most beaten up names (Banks, Autos, Tech) leading but they and the market continue to lose steam.

After yesterday’s sharp selloff across all regions, today we are seeing a classic Turnaround Tuesday. Our charts team are unsurprised given that Monday’s with >5% down days are usually (always since 1955?) followed by turnaround. Asia closed in the green territory this morning (although the Hang Seng still below 2600) and European pared back some of yesterday’s loses with cyclicals leading the way. The rally did begin to splutter, however Germany has just announced that they will weigh bank capital relief to counter virus damage, which helps! Commerzbank flying, but be wary of this just being a flash in the pan. Volumes wise, although they are lower than yesterday, it is encouraging to see all indices trading above their 20-day AVAT.

What a way to start the week!

European equities hit fresh 2020 lows after a weekend full of news in the COVID-19 and Oil space. Italy started the week with a quarter of its population in quarantine and Saudi Arabia launched a war for oil market share. All indices plunged at the open, V2X spiked (currently trading up +43%) and we are back to talking about support levels. FTSE 100 plunged at the open but support remains 6000? (was 5891 earlier but 6015 now). The Euro Stoxx 50 is trading below 3000, which targets 2908 (Dec 2018 low), but overall most of levels are now ~ 10% down from Friday’s close – please shout if you need any specific ones.